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A Risky Asset Has a Beta of 1

Question 35

Multiple Choice

A risky asset has a beta of 1.64 and the expected return of 18.8%. What is the risk-free rate if the reward-to-risk ratio is 7%?

A) 7.50%
B) 7.32%
C) 5.73%
D) 6.94%
E) 7.09%

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